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Ethereum Breaks Past $3,000 to Quadruple in Value in 2021

A representation of virtual currency Ethereum are seen in front of a stock graph in this illustration taken February 19, 2021. REUTERS/Dado Ruvic/Illustration
A representation of virtual currency Ethereum are seen in front of a stock graph in this illustration taken February 19, 2021. REUTERS/Dado Ruvic/Illustration
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Ethereum Breaks Past $3,000 to Quadruple in Value in 2021

A representation of virtual currency Ethereum are seen in front of a stock graph in this illustration taken February 19, 2021. REUTERS/Dado Ruvic/Illustration
A representation of virtual currency Ethereum are seen in front of a stock graph in this illustration taken February 19, 2021. REUTERS/Dado Ruvic/Illustration

Cryptocurrency ether broke past $3,000 on Monday to set a new record high in a dazzling rally that has outshone the bigger bitcoin, as investors bet that ether will be of ever greater use in a decentralized future financial system.

Ether , the token transacted on the ethereum blockchain, rose 3% on the Bitstamp exchange to $3,051.99 by lunchtime in Asia. It is up more than 300% for the year so far, easily outpacing a 95% rise in the more popular bitcoin.

In part, the big rally is a catch-up to late 2020 gains in bitcoin, said James Quinn, managing director at Q9 Capital, a Hong Kong cryptocurrency private wealth manager.

It also reflects improvements to the ethereum blockchain, he said, and a growing shift towards "DeFi", or decentralized finance, which refers to transactions outside traditional banking for which the ethereum blockchain is a crucial platform.

"At first, the rally was really led by bitcoin because as a lot of the institutional investors came into the space, that would be their natural first port of call," Quinn said.

"But as the rally has matured over the last six months, you have DeFi and a lot of DeFi is built on ethereum."

The launch of ether exchange-traded funds in Canada and surging demand for ether wallets to transact non-fungible tokens such as digital art have also pushed up the price, according to Reuters.

The ether/bitcoin cross rate has soared more than 100% this year and hit a 2.5-year high on Sunday, pointing to a degree of rotation into the second-biggest cryptocurrency as investors diversify their exposure.

"Surging DeFi volumes continue to push ethereum prices higher as investors gain confidence in crypto and see ethereum as a safe second-place asset," said Jehan Chu, managing partner at Hong Kong blockchain venture capital firm Kenetic Capital.

Illustrating the momentum for such new transactions, Bloomberg reported last week that the European Investment Bank plans on issuing a digital bond over the Ethereum blockchain, while JP Morgan plans a managed bitcoin fund. read more

Bitcoin , the world's biggest crypto asset with more than $1 trillion in market capitalization, regained the $50,000 mark last week and hovered around $58,000 on Monday, up about 3% but well below its record high at $64,895.22.

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Justice at Stake as Generative AI Enters the Courtroom

Generative artificial intelligence has been used in the US legal system by judges performing research, lawyers filing appeals and parties involved in cases who wanted help expressing themselves in court. Jefferson Siegel / POOL/AFP
Generative artificial intelligence has been used in the US legal system by judges performing research, lawyers filing appeals and parties involved in cases who wanted help expressing themselves in court. Jefferson Siegel / POOL/AFP
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Justice at Stake as Generative AI Enters the Courtroom

Generative artificial intelligence has been used in the US legal system by judges performing research, lawyers filing appeals and parties involved in cases who wanted help expressing themselves in court. Jefferson Siegel / POOL/AFP
Generative artificial intelligence has been used in the US legal system by judges performing research, lawyers filing appeals and parties involved in cases who wanted help expressing themselves in court. Jefferson Siegel / POOL/AFP

Generative artificial intelligence (GenAI) is making its way into courts despite early stumbles, raising questions about how it will influence the legal system and justice itself.

Judges use the technology for research, lawyers utilize it for appeals and parties involved in cases have relied on GenAI to help express themselves in court.

"It's probably used more than people expect," said Daniel Linna, a professor at the Northwestern Pritzker School of Law, about GenAI in the US legal system.

"Judges don't necessarily raise their hand and talk about this to a whole room of judges, but I have people who come to me afterward and say they are experimenting with it”.

In one prominent instance, GenAI enabled murder victim Chris Pelkey to address an Arizona courtroom -- in the form of a video avatar -- at the sentencing of the man convicted of shooting him dead in 2021 during a clash between motorists.

"I believe in forgiveness," said a digital proxy of Pelkey created by his sister, Stacey Wales.

The judge voiced appreciation for the avatar, saying it seemed authentic.

"I knew it would be powerful," Wales told , "that that it would humanize Chris in the eyes of the judge."

The AI testimony, a first of its kind, ended the sentencing hearing at which Wales and other members of the slain man's family spoke about the impact of the loss.

Since the hearing, examples of GenAI being used in US legal cases have multiplied.

"It is a helpful tool and it is time-saving, as long as the accuracy is confirmed," said attorney Stephen Schwartz, who practices in the northeastern state of Maine.

"Overall, it's a positive development in jurisprudence."

Schwartz described using ChatGPT as well as GenAI legal assistants, such as LexisNexis Protege and CoCounsel from Thomson Reuters, for researching case law and other tasks.

"You can't completely rely on it," Schwartz cautioned, recommending that cases proffered by GenAI be read to ensure accuracy.

"We are all aware of a horror story where AI comes up with mixed-up case things."

The technology has been the culprit behind false legal citations, far-fetched case precedents, and flat-out fabrications.

In early May, a federal judge in Los Angeles imposed $31,100 in fines and damages on two law firms for an error-riddled petition drafted with the help of GenAI, blasting it as a "collective debacle."

The tech is also being relied on by some who skip lawyers and represent themselves in court, often causing legal errors.

And as GenAI makes it easier and cheaper to draft legal complaints, courts already overburdened by caseloads could see them climb higher, said Shay Cleary of the National Center for State Courts.

"Courts need to be prepared to handle that," Cleary said.

Transformation

Law professor Linna sees the potential for GenAI to be part of the solution though, giving more people the ability to seek justice in courts made more efficient.

"We have a huge number of people who don't have access to legal services," Linna said.

"These tools can be transformative; of course we need to be thoughtful about how we integrate them."

Federal judges in the US capitol have written decisions noting their use of ChatGPT in laying out their opinions.

"Judges need to be technologically up-to-date and trained in AI," Linna said.

GenAI assistants already have the potential to influence the outcome of cases the same way a human law clerk might, reasoned the professor.

Facts or case law pointed out by GenAI might sway a judge's decision, and could be different than what a legal clerk would have come up with.

But if GenAI lives up to its potential and excels at finding the best information for judges to consider, that could make for well-grounded rulings less likely to be overturned on appeal, according to Linna.